Bid Discussions Ceased

Brancote Holdings PLC
5 February 2001




Date:               5 February 2001



Contacts:               Richard Prickett, Chairman

                        Bill Humphries, Managing Director

                        Brancote Holdings PLC
                                                   020 7493 1002



                        William Staple

                        Benfield Advisory Limited
                                                   020 7578 7070



                        David Bick

                        Holborn Public Relations
                                                   020 7929 5599


              [e-mail]





BRANCOTE HOLDINGS PLC



Discussions with the major mining companies referred to in the announcement
dated 8 November 2000 have not resulted in an acceptable offer for the Company
and therefore bid discussions have now ceased.


Given the success of the Esquel gold project to date, the Directors and our
partners in Minera El Desquite S.A., Mr Carlos Miguens and Mr Kerry Packer,
consider it would be in shareholders' interest to continue to add significant
value to the project by further drilling and to advance the project through
pre-feasibility towards production.


Phase IV of the drilling programme, scheduled to complete 20,000 metres by
June 2001, commenced on 22 January with one drill rig exploring the untested
Ungoliant system.  Two further rigs are scheduled to commence infill drilling
on the Galadriel Sur extension during February.  The drilling programme is
fully funded from existing resources by Brancote and its joint venture
partners in the project.


Resource estimates to include the recently completed Phase III drilling
programme, are to be reported on by consultants to the project Pincock Allen &
Holt, and are close to completion.  A further announcement will be made during
the course of February.



                                   - ENDS -

Benfield Advisory Limited, which is regulated in the United Kingdom by the
Securities and Futures Authority Limited, is acting exclusively for Brancote
in relation to this announcement and for no-one else and will not be
responsible to any other person for providing protections afforded to
customers of Benfield Advisory Limited or for providing advice in relation to
this announcement or in relation to any transaction or arrangement referred to
herein.